DELEGATE RON GEORGE ON THE SPECIAL SESSION ~ Annapolis Capital Punishment
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Saturday, December 15, 2007

DELEGATE RON GEORGE ON THE SPECIAL SESSION

Delegate Ron George is a Republican from District 30. His view on the recent special session of course differs from that of Mike Busch and Virginia Clagett, whose letters have also been published at CP.:

Dear Constituent,

The General Assembly’s Special Session ended on Monday morning, November 19, 2007. Since you elected me as your representative, I feel a duty to let you know what transpired during the “Special” session. I received over 1,500 communications (phone calls, letters, e-mails) concerning the session. Of those, barely 20 supported the Governor’s proposals.
It is important to note that when State revenue increases by 4.4%, but the state mandates increases of 8.5%, there is not a revenue problem. Instead, there is a spending problem. I, along with some others, proposed limiting the rate of increase just like a normal family would do. But those that called for this high paced session had already written the script and they wanted it followed.
I voted against each and every tax proposal that was before the General Assembly during the Special Session. I worked hard to supply statistics that showed the ramifications of each proposed tax increase. Listed below are the majority of tax increases passed during the Special Session:
1. 120% increase in motor vehicle title registration fee (an increase from $23 to $50 for which we were told that this alone will raise $32 million per year)
2. 100% increase in cigarette tax (an increase from $1 to $2 per pack)
3. 20% increase in sales tax (5 cents to 6 cents)
4. Expansion of sales tax to computer services (estimated to raise $200 million per year)
5. 20% increase in car titling tax (purchasers will now get limited relief to deduct the value of their trade-in)
6. 20% tax on net proceeds for electronic bingo and tip jar amusements (an entirely new tax)
7. 18% increase in corporate income tax rate (an increase from 7% to 8.25%)
8. Increases in personal income tax rates for wage earners under graduated tax brackets (highest wage earners face 16% increase)
9. New transfer tax on real estate transfers of “controlling interests”
They ignored the fact that you are spending so much more this year on heating costs; that gasoline prices cost you more; that your property taxes are higher; or that income dropped in Maryland last year. Overall, most have less for discretionary spending. When there is a downturn in a state’s economy, a large tax increase has never been shown to turn it around. In fact, it makes it worse.
These tax increases will raise $6.9 billion; much, much more than is needed to deal with the projected budget deficit which is what the Governor and the legislative leaders wanted all along. They already have plans to spend it all.

The slots legislation also passed. There will be a referendum in November, 2008. If the referendum passes, the five slots’ locations will become part of the Maryland Constitution. The fact is we could have statutorily sent this to referendum without making it a constitutional amendment. Despite many attempts to amend the law, it remains that the proposed Video Lottery Facility Location Commission is not specifically required to comply with Maryland’s public ethics law regarding gifts, lobbying and conflicts of interest. Amendments to keep the Gaming Industry from donating to Political Campaigns also failed. I voted against the slots legislation because it was a flawed bill. Slots’ locations should not be in the Maryland Constitution. I was against forcing gaming locations on jurisdictions that do not want it. Note that the Montgomery County Delegation is only for slots if it is not in their back yard (like housing projects). Their vote in a state wide referendum will force it elsewhere where the locals have no say. I also wondered why the gaming industry was protected from being required to take part in an auction bid for licenses. The state would have received 1.5 billion dollars instantly. But it appears the gaming industry had already struck their deals with the Governor.
Despite work to find places to cut or to limit increasing in spending, nothing was passed by the legislature that requires the Governor to do so. With the amount of revenue anticipated from the tax increases, I would not be surprised if the Governor decides to forego the recommended spending reductions.
As a member of the House Ways and Means Committee, I stood against the expansion of sales taxes to services and repairs. This would eat several thousand dollars from family funds each year. I fought the increases to the income tax and fought the blueprint they are following to chase business away from Maryland. If Maryland’s corporate tax is 8.24% and Virginia’s is 6%, would you locate your business headquarters here or in Virginia? We need to keep our tax base. New Jersey made the same mistakes in the early part of this decade. Thus, in 2005, New Jersey took in 2 billion dollars less than in 2004. I was successful with an amendment in my transportation sub-committee that forces the trade-in value to be deducted on automobiles before the titling tax is applied. I also proposed the Sellers Privilege amendment which passed in committee.
In the end, many legislators were more afraid of some ramifications from leadership than they were about harming their constituents. This Special Session clearly demonstrated that power is far more important than principle for these legislators. It was apparent that their hope for leadership positions proved more important to them than representing the people back home.
I want to thank the people of District 30 that took the time to let me know their positions on the various issues before the General Assembly during the Special Session. Please do not ever hesitate to let me know your thoughts. My office number is #410-841-3439 or e-mail: ron.george@house.state.md.us.
Respectfully Yours,

Delegate Ron George

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